NDIS Self-Management: A Guide On How It Works

Over 4 million Australians, around 18% of the population, live with one or more disabilities, which sometimes means they require support to fully participate in their daily lives. This support often comes from the 2.65 million Australians who provide unpaid or informal care to loved ones, as well as from professional disability support services. One key source of funding for essential disability support services is the National Disability Insurance Scheme (NDIS), which currently supports around 507,270 Australians living with a disability. 

The NDIS is the Commonwealth government’s central source of funding, support services, information and capacity building for people who live with a disability and who are under the age of 65. The types of support available through NDIS support packages will depend on your individual circumstances. However, they commonly include assistance with daily living activities, support to access community programs, services and activities, mobility aids and equipment, help with finding and keeping a job, and some therapeutic interventions. 

Once you have successfully applied for NDIS funding for yourself or a loved one, there are still some decisions you need to make about how to enact your plan and manage your services. There are three options for managing your NDIS funding; agency-management, plan-management, and self-management. The best management approach for your NDIS funding will depend on your unique circumstances, abilities and preferences.

3 Types of NDIS Funding Management Explained

Agency-Managed Funding

Agency-managed plans are put in place for those that want the National Disability Insurance Agency (NDIA) to manage their funding arrangements. Participants whose NDIS packages are agency-managed can choose from a list of service providers that have registered with the NDIS, who will directly bill the NDIA to pay for the services provided. The NDIA manages all bookkeeping and keeps records of your service use, making it a straightforward, simple approach to accessing support. Limitations of this approach include being unable to access support from unregistered providers, and less choice and control over how you spend your NDIS funds. 

Plan-Managed Funding

Plan-management refers to funding packages that have a third-party organisation, known as a plan manager, to help you manage your plan and purchase services. Plan-management allows slightly more flexibility, whilst also supporting you to pay for support services, keep an eye on your funding, and manage invoicing and bookkeeping. To access a plan-managed funding arrangement, advise your NDIS representative that you would like to hire a plan manager during your NDIS planning meeting. If approved, you will be allocated additional funds within your plan specifically to appoint a plan manager to help you source, access and coordinate the rest of the support services identified in your funding package. 

Self-Managed NDIS Funding

Choosing to self-manage your own NDIS funding allows you greater choice and control over how, when and from whom you receive NDIS-funded support services. Self-managing your NDIS plan comes with benefits, such as choosing who provides your services, how much you pay for support services, and how much of your funding package you wish to self-manage. It also comes with extra responsibilities compared with agency-managed and plan-managed funding. These include ensuring the support you access is directly related to the goals in your NDIS plan, ensuring your selected providers adhere to the NDIS price guide, and overseeing your own plan budget to ensure you have sufficient funds to pay the service providers you engage.

How Do Self-Managed NDIS Plans Work?

Self-managed NDIS plans allow you to take greater control over how you spend your NDIS support funding. You can choose to engage your own service providers or support staff, negotiate pricing for certain supports, and think creatively about how you use your funding to meet the goals outlined in your NDIS plan. If you think that self-managing your NDIS plan might be a good option for you or a loved one, it is a good idea to first discuss it with your NDIA planner or a Local Area Coordinator (LAC). They will be able to explain some of the pros and cons of self-management in relation to your specific plan, needs, and goals. 

Is Self-Managing My NDIS Plan the Right Choice for Me?

Self-management is a great choice for those who have a clear idea of how they want to use their funding, but it is not necessarily right for everyone. There are several additional responsibilities and requirements for self-managers to consider, which may be too onerous or time consuming for some people. The risks and benefits of self-managing your NDIS funding should be carefully considered when deciding how to manage your plan. 

10 Benefits of Self-Managing NDIS Plan

The main benefit of self-managing your NDIS funding is the freedom to use your package creatively, free from some of the restrictions of plan-managed or agency-managed plans. Other benefits of self-management include:

1. Wider Range of Options for Service Providers

NDIS self-managers can spend their funds by engaging organisations to provide services, whether they are registered with the NDIS or not. This means you are not limited to disability-specific services, but can choose from mainstream service providers or even engage people you already know to provide particular support, such as engaging a personal trainer at a mainstream gym to support you with physical therapy. Note that the personal trainer would have to agree to appropriate pricing for this service under NDIA pricing guides, and you would also need to be able to demonstrate that the personal training is directly related to the goals you have set within your plan.

2. Flexibility to Engage Your Own Support Workers

Support workers can assist people with disabilities in their daily lives, helping with things like transportation, personal care, or accessing social and community activities. People whose NDIS plans are agency-managed or plan-managed must choose support workers that have registered with the NDIS, and adhere to the price guides set by the NDIA. One great benefit of self-managing is the option to employ someone you know as a support worker, even if they are not registered with the NDIS. For example, if you have a friend that sometimes helps you to attend appointments, get ready for work, or stay on top of cleaning and domestic duties, you may be able to engage them as a support worker and pay them using your self-managed NDIS funds. This gives you or your loved one the option to receive personal support from somebody you already know and trust. However, you will still need to ensure that whoever you choose to employ has an ABN and the appropriate insurance to engage in this work. 

3. Ability to Negotiate Service Fees

The NDIA regulates what registered service providers can charge customers using NDIS funding. This is done to ensure fairness and equity of service provision. However, it can be limiting for some people. Self-managed NDIS participants can choose to negotiate costs for certain services, allowing greater flexibility and control over their NDIS budget. In some cases, this may allow for better value for money, or enable you to use savings acquired in one area of your plan to purchase additional services to support another priority area of your plan.

4. Extra Responsibilities for Self-Managers

Self-managing your plan comes with many benefits. However, it also has its disadvantages. Choosing to self-manage part or all of your plan means a much greater level of responsibility, and the need to actively keep track of how your funding is being spent. It also means that some of the safeguarding and regulations put in place to protect participants may not apply, potentially leaving you vulnerable to overpaying for services or receiving poorer quality support from unregistered providers. Some of the extra responsibilities you should consider when deciding whether to self-manage your plan include:

5. Opening a Separate, NDIS-Dedicated Bank Account

You will need a separate bank account to use for purchasing and claiming all your NDIS-funded services. This account should be in the name of the participant, or a nominee if the participant is underage. Note that bank fees cannot be reimbursed using NDIS funds, so try to find a bank account with minimal fees to keep costs low. Make sure your NDIA planner has access to these bank details.

6. Finding and Comparing Service Providers

Having more options for who provides your support services requires a lot more effort to research, compare and engage different service providers. It is also your responsibility as a self-manager to agree on pricing, create clear service agreements with providers, and make accurate service bookings to start spending your funds.

7. Employer Responsibilities

If you choose to engage your own staff under a self-managed plan, you will take on some of the responsibilities of a hiring manager for those staff members. This includes ensuring prompt payment, ensuring staff understand how and when you wish services to be provided, and addressing any performance issues that arise.

8. Ensuring the Support Services You Purchase Are Linked to the Goals in Your NDIS Plan

Whilst self-management allows greater flexibility and creativity in how you access to support, you still need to be able to demonstrate how each service you purchase will help you achieve the outcomes set in your NDIS plan. You may be asked to explain how the services you purchased have helped you meet these goals at a planning or review meeting.

9. Financial Administration

You will need to manage your funding package to ensure the support services you purchase adhere to your overall budget and provide reasonable value for money. You will also need to coordinate payment requests and ensure you pay service providers correctly and on time, as well as keep payment records and service booking evidence for up to five years. The NDIA may request to see this documentation as part of an audit or review. The NDIA may request to cite your service bookings, invoices, service agreements and receipts as part of this process.

10. Advising the NDIA if your circumstances change

If you are finding the responsibility of self-managing too much, don’t wait until a review meeting or to be contacted by the NDIA to change your arrangements. Contact the NDIA immediately and request an amendment or additional support to manage your NDIS funding to avoid any future complications.

How to Buy and Claim Services Under a Self-Managed NDIS Plan

If you decide that self-management is the right option for you, it’s important to understand the process for accessing services, managing payments and keeping track of invoices. When paying for self-managed support, you may first submit a payment request from the NDIA, and then use the allocated funds to pay your provider. Alternatively, you may choose to pay your provider upfront, and then submit a payment request to get reimbursed. 

Homage’s dedicated and experienced Care Advisory team can help guide you through the process of engaging their services as a self-managed NDIS participant. We have created a simple checklist to explain how you can use your self-managed funds to access high-quality, professional care from the comfort of your own home. Our supportive team can help you build your skills and confidence in purchasing Homage services with self-managed funds, by guiding you through four key steps:

1. Once you have your NDIS plan, start by having an obligation-free discussion with one of our knowledgeable Care Advisors so we can understand your needs and requirements. Call our hotline 0480 093 788 or complete this form. When you’re ready to make a service booking, you can do so by calling our Care Advisory team or via the Homage App.
2. Once you’ve made your service booking, our team will match your personal requirements with the most suitable support worker or nurse to fulfil your caregiving needs. You’ll receive a confirmation via email and in the Homage App prior to your booking.
3. On the day of the service booking, your Homage support worker or nurse will attend to your caregiving needs at your place of residence – this can be at home, in a facility or in a hospital. After the booking, you will receive a visit summary report in the Homage App on the services conducted.
4. Homage will provide a clear, itemised invoice for you to submit for NDIS reimbursement.

Getting support to self-manage your NDIS funding

Whilst it can be empowering to enjoy greater flexibility, choice and control over how you spend your NDIS funding, the additional mental load, administrative requirements, and planning can become overwhelming. It’s important to remember that you don’t have to manage it all alone, even if you have decided to self-manage. If you want to self-manage your funding but require some assistance to do so, there are a few options to consider. You can request additional core funding to either purchase software or hire an accountant or bookkeeper to help you with budgeting, paying invoices and keeping accurate records. You can also engage the assistance of a support coordinator to help you manage your plan. 

Finally, if self-managing your entire plan is too overwhelming, but you really want to self-manage a specific part of your funding, you can request a combination arrangement. This means that you self-manage one or more parts of your plan, whilst the NDIA or a dedicated plan management organisation manages the rest. This is a great way to get the dual benefits of greater choice and control where it matters most to you, whilst still receiving support and assistance from professionals to manage other parts of your funding package. The NDIS exists to empower people who live with disability to manage their support services in a way that works best for them. There is no one size fits all approach, so make sure to ask lots of questions, especially in your planning meeting. If you decide the arrangement in place is not working for you, reach out to your planner to make the required changes so that you can make the most of your NDIS funding to lead an empowered, independent and fulfilling life.

Need some assistance with care for yourself or your loved one? Find out how Homage can help!